The IRS game is a game that everyone has to play whether they like it or not or whether the IRS is right or wrong. In this ongoing game many individuals will fall behind the IRS. Getting back ahead of the game is not always an easy task. The IRS is known for playing dirty and kicking people while they are down. In order to get back ahead it is important to know the rules of the game set by the IRS. Not knowing the rules is the fastest way to lose more ground against the IRS.
Some of the IRS rules are more important than others. Knowing the main basic rules can help prevent you from losing ground quickly against the IRS. Below are the common rules and in the IRS game and descriptions of how each of them can keep you down.
- Rule #1: File Your Taxes – This is the most important rule of the game. Not following this rule will make it very difficult to get back ahead if you don’t follow. The penalties that the IRS charges for unfiled taxes are some of the harshest penalties that will add up 10 times faster than other penalties. This is the one rule that should not be broken and if it has been, take quick action to get your taxes filed in order limit the lead that the IRS takes on you.
- Rule #2: Pay Your Taxes – This is an important rule, but not as important as rule #1. The standard penalty for not paying your taxes is 10 times less than the standard penalty to not file your taxes. There are times when this rule cannot be followed and the IRS is well aware of this and for this reason you will not be penalized that much if this rule is not complied with fully. The penalty for not paying your taxes can be reduced further by complying with rule #3.
- Rule #3: Work With the IRS and Be Honest – Yes, it is true, working with the IRS can help you catch up. Penalties given by the IRS will slow if you do work with them. If you let the IRS know that you cannot pay your taxes and make an agreement to pay them back, they will reduce the penalty by 50% if you cannot pay. This agreement will allow you to pay your taxes back over time in monthly increments and will allow you to eventually catch up with them. It is very important to not hide anything from the IRS because they will penalize you even further if they are to find out, which they likely will.
The way the IRS plays the game is that they want to keep it even. They will allow you get back to even as long as you follow their rules. If you follow the rules above you can be assured that you will never get too far back in this ongoing game. This is not a fun game to play, but everyone must play it and they must play by the rules set by the IRS.